Tuesday, October 03, 2006

Fear of loss: Indian to rethink UK flying plan

New Delhi: The cut-throat competition in the India-UK route and resultant red mark in rival Jet Airways' balance sheet is now giving the state-owned Indian Airlines cold feet.
Indian is re-examining plans for operating flights to London, and is instead looking at cruising into emerging and more profitable destinations like South Africa, Australia and Hong Kong.
"The yields on the India-UK route have been falling and it is now turning into a financially unviable sector for any new entrant. So, we may not look at flying into London, at least not as yet," a senior airline official told ToI.
The airline had planned to operate flights to London using two Airbus A330 aircraft it is set to lease.
The firm has already set up a special committee under its commercial department to assess the feasibility of operating on the London route. The committee will also explore the viability of emerging international destinations.
02/10/06 Byas Anand/Times of India
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